Tempur Sealy Announces Proposed $1.6 Billion Term Loan B Facility
Rhea-AI Summary
Tempur Sealy International (NYSE: TPX) has announced the launch of a proposed $1.6 billion senior secured Term Loan B facility. The Term Loan B will have a seven-year maturity from the closing date. The company intends to use the proceeds, along with available cash and other debt proceeds, to fund the cash consideration for the previously announced acquisition of Mattress Firm Group Inc. Tempur Sealy plans to draw on the Term Loan B concurrent with the closing of the Mattress Firm acquisition. This financial move is a significant step towards completing the proposed Mattress Firm acquisition, which was previously announced by the company.
Positive
- Securing $1.6 billion in financing for the Mattress Firm acquisition
- Seven-year maturity on the Term Loan B, providing long-term financing
Negative
- Increasing debt load with the $1.6 billion Term Loan B
- Potential impact on financial leverage and interest expenses
News Market Reaction
On the day this news was published, TPX gained 0.71%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
– Expects to use proceeds to fund the proposed acquisition of Mattress Firm
– Anticipates drawing on the loan concurrent with closing the proposed acquisition
Tempur Sealy intends to use the proceeds from the Term Loan B, together with cash available and proceeds from other debt, to fund the cash consideration for the previously announced acquisition of Mattress Firm Group Inc. ("Mattress Firm"). Tempur Sealy intends to draw on the Term Loan B concurrent with the closing of the Mattress Firm acquisition.
Forward-Looking Statements
This press release contains statements that may be characterized as "forward-looking" within the meaning of the federal securities laws. Such statements might include information concerning one or more of the Company's plans, guidance, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "will," "targets," "expects," "anticipates," "plans," "proposed," "intends," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to the Company's expectations regarding the outcome of the pending litigation with the FTC, the expected Mattress Firm acquisition including expectations regarding post-closing supply agreements, future performance, integration of acquired companies with our business and the ability of the Company to close the Mattress Firm acquisition on the timeline indicated or at all. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with receipt of regulatory approvals and satisfaction of closing conditions prior to consummation of the acquisition, Mattress Firm's ongoing operations; the ability to successfully integrate Mattress Firm into Tempur Sealy's operations and realize synergies from the transaction; the possibility that the expected benefits of the acquisition are not realized when expected or at all; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufacturer, distributor and retailer of bedding products worldwide, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and our popular non-branded offerings consist of value-focused private label and OEM products. At Tempur Sealy we understand the importance of meeting our customers wherever and however they want to shop and have developed a powerful omni-channel retail strategy. Our products allow for complementary merchandising strategies and are sold through third-party retailers, our over 750 Company-owned stores worldwide and our e-commerce channels. With the range of our offerings and variety of purchasing options, we are dedicated to continuing to turn our mission to improve the sleep of more people, every night, all around the world into a reality.
Importantly, we are committed to carrying out our global responsibility to protect the environment and the communities in which we operate. As part of that commitment, we have established the goal of achieving carbon neutrality for our global wholly owned operations by 2040.
Tempur Sealy Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.
FAQ
What is the purpose of Tempur Sealy's $1.6 billion Term Loan B facility?
When will Tempur Sealy (TPX) draw on the $1.6 billion Term Loan B?
What is the maturity period for Tempur Sealy's proposed $1.6 billion Term Loan B?
How does Tempur Sealy (TPX) plan to finance the Mattress Firm acquisition?
